Mr. Rohan Pawar -CEO of Pinnacle Group
“The Monetary Policy Committee (MPC) of the RBI increased the repo rate by 35 basis points, bringing it up to 6.25%. This is part of an ongoing effort to bring under control the high level of retail (CPI) inflation, which is currently between 6% and 6.5%. In this cycle of rate increases, the repo rate has increased by 225 basis points (bps) after the most recent increase. Even though the projection for GDP has been scaled back, the central bank has signaled that it does not intend to hurt the growth sentiment by hiking interest rates too much. In general, the increase in the repo rate represents measured steps that are commensurate with the changing economic conditions. The increase may have a temporary effect but will be of no influence on the housing market in the medium to long term as the demand for housing remains robust.”
